Siemens Energy is investing US$150m in a power transformer production facility in Charlotte, North Carolina, creating almost 600 local jobs. Today, only 20% of US large power transformer demand is met by domestic supply with lead times of up to five years, according to the company. Tim Holt, member of the executive board for Siemens Energy, said: “The US energy transition is in full swing, with US$3.9bn pledged to expand and update the US grid within the next two years.
“However renewables projects and grid expansion can only happen with the availability of transformers.
“The US market today is mostly served by the Americas and Europe, but as global demand for this critical technology increases, we see the long-term potential to increase our US footprint, building on our long-standing presence in North Carolina where we’ve had operations since 1969.” In Charlotte, North Carolina, Siemens Energy will add to existing operations by building the first Siemens Energy Transformer production facility in the US.
With the US aiming to reduce emissions by 50%-52% from 2005 levels by 2030, the race is on to decarbonise the country’s grid, however that can only realistically be achieved through the availability of transformers, Siemens said.
Studies predict that 25% of global renewable projects are in jeopardy due to long transformer lead times, supply chain bottlenecks and lack of global transformer production, it added.
Siemens Energy’s investment will address these challenges and increase domestic US transformer production, it said.In addition to company investment, the project will also be supported by a Job Development Investment Grant (JDIG) from the state of North Carolina.